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KillerApps Micro: Risk Taking
06/22/06
Better information on risky events may lead to market failure due to adverse selection.

06/22/06
Since people are risk-averse with respect to gain and risk-seeking with respect to loss, their choices can be easily manipulated by whether an offer is framed as a gain or a loss.

06/22/06
Health insurance premiums tend to be high for individual policies because of adverse selection and moral hazard.

06/22/06
Defined-contribution pension plans increase labor mobility and facilitate the revival of old businesses in the face of massive industrial restructuring and longer life expectancy.

05/09/06
Aversion to human betrayal may reduce potentially beneficial exchanges.

12/21/01
If the insured takes less care to prevent loss, the insurer might be subject to unanticipated loss because of such moral hazard.

08/30/01
Dick Marcus
Inner city stores attract immigrant owners who are risk takers and have lower opportunity costs of alternative employment.

11/10/00
Genetic test results on fatal diseases could lead to adverse selection of membership in life and health insurance if unfavorable results are concealed from insurers.

08/16/00
Pinaki Bose
The Grameen Bank in Bangladesh uses joint liability as a screening device to overcome insufficient information on the soundness of individual loan projects and to circumvent the dangers of providing loans without collateral among the poor.

07/27/00
Cyril Chang*
The insurance solution to risky behaviors, such as smoking and underage driving, is to raise premium to discourage such behaviors and not to subsidize the treatment of such behaviors.

08/31/99
The heated stock market for high-tech startups has spawned many newly rich through riskless stock options.


Total 11 records

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